EUR/USD: general review


Scenario
Timeframe Intraday
Recommendation SELL STOP
Entry Point 1.0650
Take Profit 1.0622, 1.0588
Stop Loss 1.0681
Key Levels 1.0588, 1.0622, 1.0657, 1.0697, 1.0732, 1.0774
Alternative scenario
Recommendation BUY STOP
Entry Point 1.0700
Take Profit 1.0732, 1.0774
Stop Loss 1.0672
Key Levels 1.0588, 1.0622, 1.0657, 1.0697, 1.0732, 1.0774
Current trend
Yesterday's weak macroeconomic data from the United States could not support the EUR/USD pair. Initial jobless claims rose to 259K from 234K the previous month. Sales of new homes fell to 0.536 million in December from 0.598 million a month earlier. Only Markit business activity index in the services sector rose to 55.1 points in January from 53.9 points a month earlier. Despite this mixed statistics, the US dollar strengthened against the major currencies, including the euro. As a result, EUR/USD rate fell by more than 60 points. The pair is testing the level of 1.0657, the breakdown of which may lead to a new wave of sales of EUR/USD. Today, market participants expect the annual publication of data on US GDP for the fourth quarter. It is predicted that the rate will fall to 2.2% from 3.5% a month earlier. Confirmation of forecasts may support the EUR/USD pair in the short-term, and the price would rebound to the 1.0732 area.
Support and resistance
On the 4-hour chart Bollinger bands are directed downward, indicating a continuation of the current trend. However, there is a likelihood of upward correction to the 1.0732 area, as the price broke the lower Bollinger band.
The MACD histogram is in the negative zone, its volumes are growing, indicating the influence of sellers.
Support levels: 1.0657, 1.0622, 1.0588.
Resistance levels: 1.0697, 1.0732, 1.0774.
Trading tips
In the current situation short positions can be opened below 1.0657 with the targets in the area of ​​1.0622, 1.0588 and stop loss at 1.0681.
Positions to buy should be placed above the level of 1.0697 with the targets at 1.0732, 1.0774 and stop loss at 1.0672.


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